I think Reich's opinion is too strong for me. While I think a bump in minimum wage could be beneficial, I do not applaud Seattle like Reich does for raising it to $15… That is a very large increase. Why not start smaller and see the effect? I'm not completely on the opposite side of Reich's argument, for which he states, "Conservatives believe the economy functions better if the rich have more money and everyone else has less. But they’re wrong. It’s just the opposite." Rather, I think that a more incremental increase and measuring it's effects could be more beneficial than a sudden, non-incremental jump to $15. He also disregards many arguments for why raising the minimum wage "wouldn't work." For example, wouldn't such an increase reduce a lot of job opportunities? He states the opposite, but I can't say I agree that such a raise would actually increase job opportunities. He has several good points in this, and I do agree conceptually that an increase in minimum wage is needed, but not nearly to the extent at which he so adamantly poses.
An interesting find to contrast with his opinions I found was here: http://reason.com/archives/2014/03/03/9-reasons-why-raising-the-minimum-wage-i
Even though this article is the exact opposite and is also quite extreme, it is interesting to see the unbelievable polarity on this popular issue.
This whole issue of inequality in America and what to do about it has me very torn on what to do about it. For instance, in class on Tuesday we watched Reich's video on how strengthening the middle class through unions and increasing the minimum wage was the answer. I honestly thought his argument was pretty compelling. But then, the next night I had my small business management class where we talked about the same thing. Our professor has a very different opinion. Raising the minimum wage would mean employers will have to lay workers off in order to be able to pay workers the new higher minimum wage. So, even though some workers have more money to spend in the economy, other workers now don't have a job. Another way employers will respond to a minimum wage increase is through automating everything. Why pay a worker the new higher minimum wage when you could have a robot do it that replaces several workers? The main point I'm trying to get at is raising the minimum wage will raise the wages of some employees, but it will also make many workers lose their jobs, which completely screws many people over. Also, raising the minimum wage will create wage compression. This means that at a certain company, someone getting paid minimum wage will get a raise, but the person getting paid more than minimum wage won't get a raise. Is that fair to the second person? Neither worker increased their productivity, but the minimum wage worker gets a raise just because of external forces. It really isn't fair. I think the whole income inequality thing is an issue. But, I don't think raising the minimum wage will help.
I agree with Robert that if the median household’s income is is heading upward, the economy is in good shape. However, I do not think raising the minimum wage will help. With high living expenses and the amount of tax people have to pay, raising the minimum wage does not make a big difference. I agree with Robert's opinion that better schools for the children of the bottom 90 percent, better access to higher education, and but not a progressive tax system. Progressive tax system will hurt median household more than the rich. The political aspect plays a critical role in the economy falling down for most Americans. Unless the government decide to take strong action, not many changes can be seen.
I think Reich's opinion is too strong for me. While I think a bump in minimum wage could be beneficial, I do not applaud Seattle like Reich does for raising it to $15… That is a very large increase. Why not start smaller and see the effect? I'm not completely on the opposite side of Reich's argument, for which he states, "Conservatives believe the economy functions better if the rich have more money and everyone else has less. But they’re wrong. It’s just the opposite." Rather, I think that a more incremental increase and measuring it's effects could be more beneficial than a sudden, non-incremental jump to $15. He also disregards many arguments for why raising the minimum wage "wouldn't work." For example, wouldn't such an increase reduce a lot of job opportunities? He states the opposite, but I can't say I agree that such a raise would actually increase job opportunities. He has several good points in this, and I do agree conceptually that an increase in minimum wage is needed, but not nearly to the extent at which he so adamantly poses.
ReplyDeleteAn interesting find to contrast with his opinions I found was here: http://reason.com/archives/2014/03/03/9-reasons-why-raising-the-minimum-wage-i
Even though this article is the exact opposite and is also quite extreme, it is interesting to see the unbelievable polarity on this popular issue.
This whole issue of inequality in America and what to do about it has me very torn on what to do about it. For instance, in class on Tuesday we watched Reich's video on how strengthening the middle class through unions and increasing the minimum wage was the answer. I honestly thought his argument was pretty compelling. But then, the next night I had my small business management class where we talked about the same thing. Our professor has a very different opinion. Raising the minimum wage would mean employers will have to lay workers off in order to be able to pay workers the new higher minimum wage. So, even though some workers have more money to spend in the economy, other workers now don't have a job. Another way employers will respond to a minimum wage increase is through automating everything. Why pay a worker the new higher minimum wage when you could have a robot do it that replaces several workers? The main point I'm trying to get at is raising the minimum wage will raise the wages of some employees, but it will also make many workers lose their jobs, which completely screws many people over. Also, raising the minimum wage will create wage compression. This means that at a certain company, someone getting paid minimum wage will get a raise, but the person getting paid more than minimum wage won't get a raise. Is that fair to the second person? Neither worker increased their productivity, but the minimum wage worker gets a raise just because of external forces. It really isn't fair. I think the whole income inequality thing is an issue. But, I don't think raising the minimum wage will help.
ReplyDeleteI agree with Robert that if the median household’s income is is heading upward, the economy is in good shape. However, I do not think raising the minimum wage will help. With high living expenses and the amount of tax people have to pay, raising the minimum wage does not make a big difference. I agree with Robert's opinion that better schools for the children of the bottom 90 percent, better access to higher education, and but not a progressive tax system. Progressive tax system will hurt median household more than the rich. The political aspect plays a critical role in the economy falling down for most Americans. Unless the government decide to take strong action, not many changes can be seen.
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